>> from the financial centers of the world, this is bloomberg markets with alix steel and guy johnson. alix: it is 30 minutes into the u.s. trading day, monday, october 16. here are the top stories we are following this hour. the iphone 15 is selling far worse in china than in previous versions. pfizer's covid problem, slashing its guidance, takinand yields k, this time stocks are up as

earnings season kicks off this week. from new york, i'm alix steel with guy johnson in london. i do wonder what the catalyst will be this week to be honest. guy: i don't know what this week will be about. is it going to be about the fed and yields? we have acres of fed speak. is it about what happens in israel? we are all anticipating that we will see some sort of a ground invasion of gaza. or will it be about earnings? so much going on this week, it is hard to pin down what the catalyst could be. alix: that is why i found the apple story so interesting overnight. we have not talked about china in a while. the china risk when it comes to certain sectors. some that we know, some that we don't. how do you price that in? guy: you wonder if the earnings

season means we will have to revisit this. we did this with the lvmh earningsn noticed a clear slow down. why there is that slowdown remains an omen open question. you bring up apple which is fascinating. reports that the latest iphone is not selling as strongly but why? it is that last bit that we have not nailed down. is it a macro story, something more geopolitical, is it because the product is not good enough? i think the comparison with lvmh is a useful one payment has apple caught lvmh's china called? joining us to discuss is ed ludlow, alex webb with me. we are in a situation where we don't know what the data is telling us, trying to understand what the numbers are telling us. we don't know why the numbers are down. >> we have a quantitative piece

of research year on the news site, saying that sales of the iphone are down 4.5% compared to the year earlier period. that is unit sales, not revenues. may not be catastrophic for apple earnings. we have seen a slowing of sales in china. trailing 12 month sales, certainly a flattening. the question is whether this has to do with a resurgence of chinese nationalism, gusto behind huawei's flagship device, or secondly, is it just the chinese economy? if that economy recovers, apple will, too. alix: ed, this can go many different directions, but clearly anything luxury in china is tough right now. >> it is a confluence of the macro story that guy was talking about and the story that alex

was talking about. counterpoint, it is the chinese economies. what is analogous between apple and lvmh, there is still growth in china. gdp print is expected to show a modest uptick in growth quarter over quarter. the stories within that are the markets where your iphone buyers are the same as those buying lvmh. youth unemployment is still very high in china. there has been a psychological shift in the younger chinese consumer from buying goods to spending on experiences, just like we see in north america and europe. one point of caution on that data, that 4.5% drop since iphone launched is an aggregate of all of the variants. historically, chinese buyers have been driven by technology

upgrades, which of the pro and pro max have. apple always surprises us with china, and that is worth bearing in mind. guy: what is the situation elsewhere in the world? lvmh has talked about the fact that they are seeing a slowdown in north america but the data on looking at suggests apple's new phone is selling well in north america. >> a beautiful story where all of the data contradicts itself on a year-over-year basis. the counterpoint research data shows that in the u.s., they go for a night-day period from the launch of the 15, sales are up here in the u.s. there is an upgrade cycle story, evidence that a north american consumer had been holding out for multiple generations to buy a new iphone. i don't know where you are at with your strategy. alix: he has no iphone buying

strategy. >> i couldn't resist the temptation. i got the 15 pro. the technology upgrades were enough to do that, but my prior phone was a 12, the base version. the quarter ending in june, china was the strong point for apple amid smartphone market weakness. 8% topline gain. if you look at the commentary from cook, it was the iphone that grow that. the guidance was that sales would accelerate into the final three months of the year. alix: just so that everyone is aware, guy has two samsung phones. guy: and the peer pressure is a norm us. alix: it is true. what i find different from comparing lvmh is the nationalistic tendencies when it comes to the smartphone. the homegrown smartphone may hold more appeal in china.

there is no homegrown luxury bag. talk to rachel that is evolving in china when it comes to the iphone. >> luxury goods are not yet geopolitical, whereas we have seen that with technology products. the u.s., commerce department really cracking down on the ability to sell high end into china. china, it looks like they are finding ways to push back on that. they have banned the use of iphones in government owned enterprises. also crackdown on some u.s. chip makers in spaces. the concern is if apple is getting caught up in that crossfire, and if so, how long that would last. i should give a caveat, this did happen previously in 2018. certain brands took a boost, it didn't last all that long. with any of these things, we

don't know how long they are likely to last. guy:back to the lvmh risk, thers a geopolitical risk. how do you price that risk in? you don't know, but to a certain extent, you have to price it in. how do you price in the risk of local phone getting better, concerns about people wanting to be seen with an iphone? how does the market think about, should the market think about this? >> as ed points out, apple always manages to pull the rabbit out of the hat. in china, they tend to do greater operation margins than the u.s., perhaps selling more higher end products, more services, which is interesting given the penetration of we chat. no matter how generously it is price, some will say it is priced at a discount. it is still growing, posting

huge free cash flow on any given year, even with some of the tribulations it faces. alix: fair enough. we can look at the big spy. they are doing well, will be the drivers of earnings season. appreciate it, guys. we appreciate you breaking it down for us. i feel like one guy gets the iphone, that will be the top for apple. guy: that will absolutely be the peak. all my family have iphones, the pressure is mounting. i will ignore you lot. you give me daily grief, but when my family decides that i need to get one, that is the top of the mark. alix: more of the question of the day, has apple caught lvmh's china cold? lori calvasina of rbc capital markets joins us next.

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guy: a lot of this is whipsaw. >> we've been watching these rise in yields. >> we are going into a more volatile world. >> we have lost all anchors to the bond market, all of them. >> it has really been the volatility the last three months. >> the economic anchor, we have lost the technical anchor and we have lost the policy anchor. >> the long rise in the yield was doing the fed's job. >> the fed is done raising interest rate because they realize the bond market has been doing the heavy lifting. >> what level of rates in

financial condition do we need here? >> the bond market is looking ahead, figuring out that the fed indeed is getting it right. >> the economy does not weaken, then the path of least resistance for yields is higher. alix: those are some of the guests earlier weighing in on the volatility in the bond market. let's get to the question of the day. has apple caught lvmh's china cold? joining us is lori calvasina of rbc capital markets, recently upgraded her forecast. we will get to that in a second. focusing on the apple story, do you think they have caught lvmh's china cold, and if that happens, what does that mean for the market? lori: i cannot comment on apple specifically but to the extent we had complacency on china from the beginning of the year, from

the april-may timeframe was really remarkable. it is not surprising that it will take some time to see that complacency unwind. one of the things that we have been tracking closely on the fund flows data is watching inflows into china, equity focused funds, and those have been slow to turn negative. coming off of a high peak, slowly making their way back to neutral. but the deterioration has not manifested into outflows yet. there is room for this whole china recovery story to unwind, even though it seems that we've been talking about it for a while. guy: more broadly, do you think that high-end discretionary company stock seven issue right now? paul and lvmh are the ultimate high and stocks. with the shape the consumer is in right now, is this an area you want to avoid? lori: you can look at it from two ways. it is one of the latter dominoes left to fall.

if you look through the company commentary over the last few months, quarters, it has really been a bifurcation of the high-end consumer versus the low-end consumer. generally we have seen some strength with the how young consumer. i am not seeing anything yet that tells me we have to watch how young consumer fallen off of the cliff, but we have not seen that erosion yet. a lot of concern about the consumer. concerns that the excess savings have been spent down. i think the buffers in the u.s. in particular are underappreciated. certainly an area where, as people price of softness on the economy back in, the pendulum of avoiding the recession swung too far. but as we swing back to the idea of baking and risk to the consumer, that is where people will be focused. alix: i should point out, lori gave guy some considerable shade

for only two samsungs in the break. apple, microsoft, google, nvidia, we are still looking for solid earnings, seems to be but will be propping up over all s&p earnings. what are you seeing? if we have to price in the risk that we are seeing, is that a change for the overall index? lori: the way the magnificent seven, the big five, that will have a ripple effect on price-earnings. we know that big tech companies have been propping up margins in the s&p for some time as well. i think the real issue for me is not necessarily looking for those companies to fall off a cliff, but rather to have competition on the earnings front. going back to the first half of the year, those companies, the growth part of the market was the only game in town in terms

of where you are seeing excitement in earnings, upward revisions. now we are seeing upward revisions to energy companies. that is a change that happened around midyear. financials are also starting to see a tremendous yielding in earnings revisions. they are heading back in the right directions, showing some recovery there. that is the threat to tech next year, not that there earnings fall apart, but rather that there is competition. guy: in terms of this earnings season we are about to see, where should i be focusing my attention, on the top line? is it in the middle? margin recovery as costs come down? walk me through, in the light of your eps call, where you see the narrative shifting? lori: revenues will be a big focus. every time we go into a reporting season, we are all focused on demand, whether it is

on the corporate or consumer side. if recessionary fears do come back, we start to see a degradation in the demand environment, that will hurt your revenue line. the other issue is looking at margins. one of the differences between my numbers next year, still a recovery year, just not as great as consensus, i'm looking for a return to 2022 margins based on my modeling. the consensus is looking for a heckuva lot of margin expansion. i am skeptical that you will get that because you have not seen any analysis that tells me, when inflation comes down, margins expand. what i do see in my modeling is, as inflation comes down, revenue growth gets dampened. we have that baked in. people are starting to understand the impact of eroding inflation on pricing power. you are stunned to see that in company transcripts. look for that conversation to continue, but also a deeper discussion on what will happen

with marge's next year, how the pricing versus cost dynamics play out. alix: part of your call is not only that inflation will come done but rates will not stay at these rates either. what are you seeing that everyone else isn't? lori: in our earnings model, we are pulling in the consensus forecast on interest rates, still digging in some relief on the 10 year interest rates, and a couple of cuts in terms of fed expectations next year. that is the economic consensus out there. there is still time for that to change. that is not the biggest driver in my model really, it is the revenue line, margin line. interest rates matter and that is where that forecast comes into play. we have interest expense on the tip to sales at about 2.5% this year. we have it coming down a little bit next year, 2.2% as a whole. if the fed moves more, you will see that number come down.

if the fed comes in higher than consensus expects cuts to be, that will pressure that interest expense line, bite more on the earnings side. guy: i will let you know about the iphone thing. one of my samsungs is about to run out of steam, so there could be a big decision coming up. lori is quite unequivocal in which direction i could go here. always great to catch up. lori calvasina of rbc capital markets. still ahead, u.s. plans sweeping measures to restrict china's access to advanced semiconductors. details on what is happening in the chip war, next. this is bloomberg. ♪

alix: it is 22 past 7:00 on the

west coast. covering the top stories around the bay area and beyond. joining us here on the east coast is caroline hyde. we want to talk about china in relation to the chip sector. more restrictions now? >> it seems like they could be announced early this week. ultimately, the biden administration, last october, put in restrictions to ensure china could not accelerate their own chip innovation. but they did. we understand the teardown of the huawei phone, a very advanced chip within it. these restrictions imposed last year were not good enough. also intermediaries, how we are seeing asml in the netherlands, other providers that have not

been scooped up in these restrictions, still enabling certain chinese players. huawei has access to such technologies. guy: do u.s. authorities think they can stop the trade? what is the ultimate objective? throttle it back, stop it? clearly this will be a game of cat and mouse. generally the mouse gets away. caroline: many have felt they had not been effective since october. and this is it, whether they want to restrain ultimately the chinese military of having access to such developments. the cat is already out of the bag and we are already seeing that they are able to develop highly sophisticated chips. maybe it is too little, too late. also you have corporate america pushing back on these. nvidia says ultimately it is a restriction of trade.

you are just forcing china to fast-forward their local capabilities. certainly that's been an argument made by asml as well. many believe this is difficult to achieve, but with pressure coming on the administration, they have to be seen as doing something. alix: it begs the question, how far up the supply chain do you go? if you go all the way up, it's impossible to separate chip manufacturing and technology from one country to another. the same way if you are looking at the energy transition. it depends on where you put the stop sign. caroline: at what point do we go into the very making of a wafer within the chip? the whole ev area is dependent on the rare earths coming from china and the politicization. china is saying if you are upping the ante, we don't like the politicization of trade and technology.

guy: looking forward to the show later on. bloomberg technology coming up in just over 90 minutes time. what are we going to be talking about next? president biden is considering a trip to israel as a diplomatic effort to prevent more from spreading across the middle east. the latest from tel aviv, washington. i hope that we can go to tel aviv for the latest. the critical question right now is also what is happening at the southern end of the gaza strip. some difficult situation developing their. israel and egypt have some difficult weston to answer right now. i still have not figured out what impact this is having on the markets today. alix: it goes to the farther question of how much this and some spread in, pulling more countries into its severe -- sphere.

in many ways, it feels like that is why the secretary of state is going back to israel. this is bloomberg. ♪ avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh nice footwork. man, you're lucky, watching live sportsh never used to be this easy. now you can stream all your games like it's nothing.

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alix: one hour into the u.s. trading session, yields are higher and so is equities. tech is outperforming. simone foxman is following the moves for us. simone: diplomatic efforts ramping up to try and limit the fallout from this more in the middle east between israel and gaza. we are seeing that reflected in some of the enthusiasm in the markets today. s&p 500, nasdaq both higher after two days of losses. toward the end of last week, bones falling, particularly on the long end. 10-year yield up close to 10 basis in today's trading. also seeing oil falling after last week's rally, 86.66 a barrel. we are also paying attention as

we head into earnings season. this week is not the big week, but we will see bank earnings from some of the remaining major players on wall street, regional banks, and then we get news from big tech next week. $15.8 trillion worth of earnings represented. there is real disparity looking across wall street at what is anticipated. bank of america talking about 11 print -- percent of the s&p have come ahead of q2 as well as historical guidance. citigroup says downgrades outpacing upgrades already. jp morgan sees that trend continuing. one space that we are watching for earnings, results, where we are seeing a lot of heavy trading today, health care sectors. j&j, and thumb, and it all reporting this week. those will be big names. we are seeing the health care

index higher partly on enthusiasm around pfizer. they made dramatic cuts to its guidance for the full year on week covid demand. a lot of analysts believe we could see an end in sight, but moderna shares taking the hit on the brunt of that news. eli lilly a little bit higher as they came out with new results from their phase 3 trial results resulting in 23% weight loss in obesity. there is a very important study going on here about the impact on the health of people who are not necessarily diabetic are taking the drug. guy: thank you, simone foxman. let's turn back to the geopolitics. president biden has canceled a trip to colorado. he was meant to go there today. he is focused on what is happening with a national security situation, as the

president is considering a trip to israel in a bid to prevent more from spreading. let's talk about this. all crook is in tel aviv, annmarie hordern isn't washington, d.c. we are anticipating there will be an incursion by israeli forces into gaza, there will be a ground offensive. we are all waiting for when. do we have any visibility on when that is likely to happen, what is the link that operation at this point? >> we don't have much visibility on that. friday, israeli defense forces were saying there had not been a political decision on whether or not there would be an incursion. they said the next phase of the war will be from the air, sea, and land. what form that takes we don't know. the timing, we have little

visibility on. one can speculate but it is probably safer not to. there will be world leaders here. antony blinken is here, all of schulz coming tomorrow. if biden comes tomorrow, could that slow down the possibility of a move in? also the focus is on the northern part of the border where there have been more skirmishes. civilians have been evacuated of the lebanese border. this will be the main objective of secretary blinken and others to contain. alix: you are in the middle of tel aviv. tell us what it is like there right now. oliver: i have been here since wednesday, i was here seven months ago, and the contrast is stark. there were huge protests every weekend for months, acrimony within the political system. that has evaporated under solidarity. starting friday night, we had

air sirens go off a number of times, another one just a few minutes ago we go into a shelter. we hear explosions, usually the iron dome knocking them out. often times they don't bother shooting them out of the sky if they are going into the sea. as the strike was going on in tel aviv, there was another one in jerusalem. our cameraman said a bomb fell about a block away from his house, everyone is safe, but this is the situation now on the ground. guy: this is the situation the president of the u.s. may be entering. ann marie, what is the risk and reward for president biden to make a trip right now? annmarie: this first leaked out in the israeli press. we have reports confirming here at bloomberg as well that the president is waiting this. the risk, if you didn't go, what

does that mean if that is now out there? doesn't look like he is backing down? the reward would be to make sure that he is standing, as he said he wants to do, shoulder to shoulder with israel, showing in a forceful way u.s. support for israel. at the same time, it would be a huge show of deterrence to the wider region, most notablyiran. you do not want to get involved in this conflict. the u.s. wants to see this conflict contained along the israel and gaza border with hamas. as oliver says, we expect this potential ground invasion, but at the same time, they want to make sure that this does not spiral out of control. it is why the u.s. now has two aircraft carrier groups in the eastern mediterranean. one is on the way.

the eastern mediterranean at this point is armed to the teeth which could also mean that maybe they were planning for the president to go there and why they sent the second one. alix: what will be secretary of state blinken's goal going back to israel today? annmarie: secretary blinken is squarely focused on this raffa border crossing from egypt into gaza. the u.n. is talking about a ton of humanitarian aid witting to get into gaza that is desperately needed. if you look at the report of what is going on in gaza, the humanitarian situation is dire right now. at the same time, there are a number of palestinians living in gaza that want to evacuate, go into egypt. this border crossing was supposed to be opened. as per secretary blinken's meeting after leaving cairo with the egyptian president sisi.

but there are lots of reports that this is actually not happening. the highest levels of diplomacy are trying to work out what is going on with this border crossing. at the moment it does not appear to be open. that is one of the biggest concerns for the secretary of state as he makes a second trip to israel this week. guy: oliver, what with the israelis like to see at raffa? concern on the egyptian side that they would see palestinians crossing the border. what will the --with the israelis like to happen there? oliver: it is hard to know. we have had reports of israeli switching on the water in southern parts of gaza. israel is certain -- responsible for a certain portion of the water and electricity that goes in there. what used to be clear is a message that we got from antony blinken last week. the number one message from all u.s. officials was unflinching

support for israel. what secretary blinken said last week, has to be present in the minds of everybody is how israel goes about dismantling hamas. that is critically important. mitt romney said anything that happens, all the images that you see out of gaza is hamas' fault. that is not the view of many arab states, certainly not tehran, and hezbollah. alix: and how do separate the more, humanitarian situations at the same time? thank you so much. let's stick with the geopolitics. washington post is reporting that the u.s. will ease sanctions on venezuelan oil for for your elections. i don't really know what that means, feer elections, but the idea that there may be some oil relief as there are tensions in the middle east, oil continues to grind higher on the news. oil is off by a full percentage

point. keeping our eyes on that headline. the u.s. will ease sanctions on venezuela oil for freer elections. pfizer is slashing its forecast as uncle sam sends back up to 8 million doses of paxlovid. this is bloomberg. ♪

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it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management. alix: this is bloomberg markets. coming up this thursday, fed chair jay powell in a conversation with anchor david westin, live at 12:00 eastern. this is bloomberg. ♪ alix: pfizer's stock is up today. it is cutting its guidance after agreeing to take back paxlovid doses from the u.s. government. pfizer was one of the darlings of the covid hero. for more perspective, we are joined by a director of

biopharmaceutical research at bmo capital. the reason why the story spoke to me, does covid no longer matter, and that is why the government is giving back these doses? what did you make of the news? >> a few things going on. covid still matters, there are people still taking paxlovid, people getting their vaccine. there was a disconnect between what pfizer thought they would sell this year and what is actually being used. i also think there is a little bit of nuance. the government wants the nda version versus the emergency use authorization. the government does not want those unused doses on hand. guy: what is the long-term usefulness for this product, what are we going to use it for in five years time? is this something that pfizer

wants to get through, can turn into a highly profitable product? >> good question. i don't know if we know the answer. there will always be a need for an antiviral against covid, but depending on how much virus circulates, i think about taniflu. about a billion dollars but not a huge blockbuster for them. alix: pfizer gets to sell paxlovid at market price, they get more money when they sell it, but those that need paxlovid are on medicare anyway, so the government picks it up at a discount. >> they have the product give back, but in future years, the government can use it as a store credit to get more doses for the government programs like medicare and medicaid. i think you'll see some use in the commercial market but it is not driving the pfizer p&l.

guy: how much of this is really news? didn't we expect there would be this kind of work through? >> i think there is some news. pfizer is waking up and smelling the roses, aligning their expectations with reality. go back to the second quarter earnings call, there was uncertainty around the demand for covid products. the cfo even hinted that even if demand didn't shake out, they would do some cost cuts. it is more of a follow-through of what they hinted, but the news here is the government give back, realignment of the contract. alix: it does feel like it is weighing on the guys that are solely focused on the covid era, don't have the real pipeline going yet. i wanted to hear your take on the ozone pic -- ozempic craze. all of the snack, retail guys

talking about how this will affect their business. does this have any teeth to it yet? >> pfizer also has an obesity product in development. i think it is too far to make any asportation's as to the broader consumer market. i'm focused on the upcoming launch of other drugs and what that looks like for eli lilly stock. you will see demand takeoff. too early to say what kind of impact that will have on what we eat and consume. remember, these are serious drugs for patients with serious metabolic disease. guy: long-term, how big do think the potential market is? this feels like the ai craze from early on. everyone is trying to figure out what the ultimate impact will be. will ozempic ultimately impact all of our lives? >> it is not just ozempic, it is

other drugs in development. i don't know if it will affect all of our lives, but it will for those who have bmi's above 27, who are obese. we think the obesity market alone, not diabetes, could be greater than $70 billion in the u.s. 100 plus billion dollars globally. this could be one of the largest markets in pharmaceutical history. alix: this raises an interesting question. if we pair it with ai, when nvidia came out with some serious revenue numbers behind it, all ai stocks moved higher. any company that mentioned ai got a boost. this earnings season, do you think it will be the same for pharmaceutical companies, if you say weight loss drug, your stock goes up? >> every time they have cited the past two years, we have seen stock movements.

we have been seeing that already. what will be most important is when eli lilly launches, seeing the numbers that they put up, seeing what that market actually looks like. so the assumptions become reality. guy: fascinating to watch. thanks for joining us on the ozempic story and what is happening with pfizer. that stock moving in the market today. you talked about the yogurt story. apparently it could be stocks good for stocks like dannon. it has an impact on blood sugar regulation. it could end up not being a negative for these companies but a positive. alix: trading on pharma guys is one thing, but getting a clean

read, you have the weight loss drug and you are going to eat more yogurt? i don't know how you draw that line yet. we have not seen the evolution of what this looks like. guy: i don't know what the banana story will be but maybe it will have an impact as well. coming up, we need to talk more about what is happening on wall street in more detail. goldman sachs on a crucial mission to basically stir up excitement over goldman stock. what will that look like this week, over the next few days? we are not done with the bank earnings season. this is bloomberg. ♪

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and in the world of banking and finance. we are looking at goldman's global health and asset management. joining us now is our reporter who did this story. we are not talking about its consumer unit, markets, but money management, and how that could change the game. >> when you look at goldman sachs, there are two important legs to the stool. everyone knows their strength in investment banking. even if it were to value it higher, it will not radically reshape goldman sachs and how it performs in the stock market. however, there is this asset and wealth management side, 2.7 trillion in size. goldman is making a real pivot there, going away from its balance sheet bet. the man in charge of it, i would

argue, is the third most powerful person there behind the ceo and his deputy. mark is the only one that has run trading, investment banking, and now has this critical mission. if you can really grow this business and show the market there is value in it, that he can continue to grow in a very predictable and reliable fashion, then the stock market multiple could catch up with stock rivals like jp morgan, morgan stanley. what does that mean for goldman sachs? a stock trading at 310 today, if it had jp morgan or morgan stanley multiple, that is a big gulf that they are hoping to bridge. guy: solomon's legacy rests with the sky. he gets it right, we are back to being a hero. he gets it wrong, bad things lie ahead. >> i don't know if he ever started with the hero title, but it is true, everyone knows the

issues at goldman sachs, the misfire forays. five years into david solomon's tenure, hard to imagine that if he were to leave today, people would see it as a glorious run. stockton well through the pandemic. book value grew well with the further we get away from the pandemic, as that boom starts to fade, you can see book value growth has not been great. the stock has not gone anywhere the last 12 months. still $100 down from its all-time highs in october 2021. so what does solomon have to do to change the perception of his run as ceo? prove to the market that this pivot works. if you are looking at it five years from now, and it is successful, you will say this was the change that goldman sachs needed. david solomon has delivered that. he is not there yet but he could

get there. guy: is it possible to change goldman sachs' dna? it was a great piece. i read it this morning. bank earnings this week. let's talk about the markets as we see them today. stoxx 600 higher today. retail is up. what you have also gone is a bond market selloff. look at what is happening with the u.k. 30. up by about 10 basis points. keep an eye on the bigger move in the bond market once again. take a look at what is happening in poland. donald tuusk is a long-term european politician who has gone back to poland, won as a part of a coalition. basically pushing out the law and justice party which has

caused so many problems with brussels. the market is pricing in a significant amount into polish assets today.

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guy: monday, the 16th of october appeared european equities rise. retail doing well. the countdown to the close starts right now. >> the countdown is on in europe. this is bloomberg markets: european close with guy johnson and alix steel. let's take a look at the

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